Australia Holds Rates as Jobless Threat Lingers

Cash Rate at Record-Low 2.5% Since August

SYDNEY—Australia's central bank is keeping interest rates on hold for the foreseeable future, saying it expects unemployment to rise beyond its current 10-year high level.

"On present indications the most prudent course is likely to be a period of stability in interest rates," Gov. Glenn Stevens said in a statement accompanying the rate decision. "The bank expects unemployment to rise further before it peaks." The...